The fund, which invests in traded life policies, has been suspended since November 2011 after the FSA’s issuance of draft guidance on what it termed "death bonds".
Investors were sent a circular in September asking them for approval for its restructuring proposals to take to the Guernsey Financial Services Commission; otherwise it would consider appointing a liquidator.
An overwhelming 95% of investors voted for the restructure. Simon Shaw, Chairman of EEA Fund Management Limited, said: “The Board of the Fund was strongly of the view that this proposal offered the best way forward for shareholders and they have overwhelmingly agreed.
“We know this period has been extremely frustrating for them and we are grateful for their understanding and support. We continue to have confidence in the ability of the life settlements asset class to deliver attractive returns. A large number of shareholders share that view and have elected to remain long-term investors in the asset class by opting for the continuation share class.”
In August, EEA wrote to shareholders investors of a 10% reduction in the fund’s net asset value. This was after a damning report from auditors Ernst & Young in July, which said the fund was worth approximately $100m (or 11.48%) less than the directors’ fair valuation at that time of $871m.
